ALLSTATE CORP Quarterly Report for Q1 Ended Mar 31, 2025

Summary

The Allstate Corporation reported net income applicable to common shareholders of $566 million, or $2.11 per diluted share, for the first quarter of 2025. This represents a significant decrease from $1,189 million, or $4.46 per diluted share, in the same period of the prior year. The decline was primarily driven by a substantial increase in catastrophe losses, which rose to $2.20 billion from $731 million year-over-year, and higher realized capital losses on investments. Despite the lower net income, total revenues saw an increase of 7.8% to $16.45 billion, boosted by premium rate increases and a higher number of homeowners policies in force. Allstate Protection underwriting income was notably lower due to these catastrophe losses, though premiums written across property-liability segments showed an 8.5% increase. The company also continues to execute on its corporate strategy, including progress on planned dispositions of certain health and benefits businesses, which are expected to result in significant gains upon closing. Allstate shareholders' equity strengthened, and book value per diluted common share increased, reflecting the company's ongoing focus on shareholder value despite the near-term impact of severe weather events.

Key Highlights

• 1Net income applicable to common shareholders decreased by 52.4% to $566 million in Q1 2025 compared to $1,189 million in Q1 2024.
• 2Total revenues increased by 7.8% to $16.45 billion in Q1 2025, driven by premium rate increases and higher homeowners policies in force.
• 3Catastrophe losses significantly increased to $2.20 billion in Q1 2025, up from $731 million in Q1 2024.
• 4Allstate Protection underwriting income decreased significantly to $364 million in Q1 2025 from $903 million in Q1 2024, primarily due to higher catastrophe losses.
• 5Premiums written across property-liability segments increased by 8.5% to $14.30 billion in Q1 2025.
• 6The company expects to record significant gains from the dispositions of its employer voluntary benefits business (closed April 1, 2025) and group health business (expected to close in 2025).
• 7Allstate shareholders' equity increased to $22.06 billion as of March 31, 2025.

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